The growth of luxury industry in the country has also compelled global brands that had once failed to set up their Indian ventureJaideep Shenoy | TNN | October 13, 2016, 07:42 IST

Picture source: ThinkStockFashion-forward, beauty-conscious and ultra-affluent working women in India are driving up the growth of India’s $9 billion worth luxury market and account for the overall market share of about 155 in this regard, according to a just concluded survey-cum-analysis conducted by apex industry body ASSOCHAM.

India is home to over 1,200 ultra-affluent women with a combined net worth of about $100 billion with the majority of them being in Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata, Mumbai and Pune.

“Growing number of young working women (with high paying jobs) having increased awareness of global fashion and beauty trends are driving up the demand for high-end luxury products and accessories across various segments be it jewellery, watches, apparels, footwear, cosmetics and others,” noted an analysis based on a survey conducted by ASSOCHAM.

“Working women or women with an active life have better spending propensity and are thus conscious of their appearance and are open to investing in luxury products,” said D S Rawat, secretary general of ASSOCHAM while releasing the findings of the chamber’s analysis. “As professional women are emerging as new decision makers and make most of their household purchases, it is imperative for luxury brands to open dedicated women’s stores and expand their product offerings to build long-term relationships with this new breed of luxury spenders,” Rawat said.

“Luxury industry is becoming more female dominated as women’s brands have experienced a steep rise,” he added. “Considering the low levels of penetration currently even as an increasing number of affluent women are entering the consumption curve, there is a huge scope for leading global luxury retail brands to expand their India footprint, by focusing on ‘women special’ product portfolio and carrying out innovative marketing campaigns,” further said Rawat.

ASSOCHAM had also interacted with about 500 working women in an annual salary bracket of Rs 5-10 lakh in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai to gauge their shopping habits during August-September this year. About 20% of the total respondents said they purchase only luxury products owing to their quality control and easy availability both online and offline.

While, many of these said that luxury products have top-notch quality and that is the sole reason they prefer them over regular products and affordability is not an issue as they earn enough to splurge. Of the remaining, majority said they buy at least one luxury product whenever they go shopping and have a plethora of luxury products lined up in their wish list which has been growing by the day.

While rest of the respondents said that luxury products are only overrated and pricey, besides there is hardly any different in quality compared to regular products.

Jewellery, watches, apparel and accessories, personal care and electronic products are top five categories for women luxury buyers in aforesaid centers. Rising purchasing power coupled with growing awareness of global brands and with the luxury products distribution penetrating well beyond large metros to other smaller cities will contribute to the growth of luxury industry in India as we go ahead, further noted the ASSOCHAM survey-cum-analysis.

The growth of luxury industry in the country has also compelled global brands that had once failed to set up their Indian venture and are as such returning with a better strategy, customised products and prices that better suit the consumers here, it added.